Some Texas residents are already expressing skepticism about a recently passed law recognizing gold and silver as legal tender in the state, as well as the establishment of a transactional currency based on the precious metals.In a Sunday X post, Texas Governor Greg Abbott announced that he had signed House Bill 1056 into law after passage in the state House of Representatives and Senate.
The bill, expected to take effect on May 1, 2027, amends the state government code to recognize gold and silver as legal tender and for residents to use them in everyday transactions based on the comptrollers determined value at the time.Source: Greg AbbottAbbott cited a clause of the US Constitution stating no state shall make any thing but gold and silver coin a tender in payment of debts, though the law would not prohibit Federal Reserve notes or other US currency for use as legal tender in Texas.
The law would also not require any person to accept gold or silver for the payment of a debt, for deposit, or for any other purpose.Under the Texas governor and Republican-led legislature, the US state government has moved forward with some bills proposing the adoption of cryptocurrencies such as Bitcoin (BTC).
On the same day he signed House Bill 1056 into law, Abbott approved legislation for the creation of a state strategic BTC reserve.Related: Golds rally to $3,360 is beneficial for Bitcoin: Heres whyThe United States has been off the gold standard for day-to-day domestic transactions since 1933, when President Franklin D.
Roosevelt signed an executive order requiring people to return gold coin, gold bullion, and gold certificates to the Federal Reserve.
Though individual states like Texas have been exploring the adoption of different assets, they are barred from issuing notes and coins under the Constitution.News outlets have suggested that the establishment of a transactional currency could allow Texas to recognize digital currency backed by gold or silver as legal tender.
Some residents, however, questioned earlier attempts by the legislature to pass similar legislation, citing concerns for retailers.How is the retailer going to protect themselves and be able to ensure that the gold or silver coin is authentic and not a counterfeit? said Reddit user the_shootist in response to a proposed 2015 bill, adding: There just seems like a lot of moving parts here that would need to be accounted for to make this viable.Several US states already recognize precious metals like gold as legal tender, but dont require retailers to accept them as payment.
Businesses in certain states have been accepting gold notes called Goldbacks as payment, though they do not qualify as legal tender backed by the state or federal government.
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